I've tried changing the shadow settings but nothing really seems to be working. If I move any lamps the shadows on the model stay static in that they're completely unchanging and don't move in response to the changing of the lamp tool.
It's almost as if the shadows themselves are painting onto the model but even if I strip the material the shadows are present on the model itself and are still unaffected by any change in lighting.
Absolutely no difference in shading despite repositioning on lamp.
I'll post the file as an example so whoever's curious can take a peek. Here's the file